• Spike around 30-35 pips on disappointing headline NFP print.
• Wage growth data help limit deeper USD losses.
The GBP/USD pair quickly reversed a mid-European session dip to 1.3525 area and refreshed session tops in an immediate reaction to dismal headline NFP print.
The US Dollar weakened across the board after the latest US jobs report showed employers added only 148K new jobs in December, weaker than 190K expected. Investors turned sceptic over possibilities of a March Fed rate hike move, which is evident from a sharp retracement in the US Treasury bond yields and eventually prompted some fresh USD selling.
The disappointing headline number, to some extent, was negated by an upward revision of last month’s reading, now showing an addition of 252K as against 228K reported earlier, and a modest uptick in average hourly wage growth.
The pair remained capped below the 1.3600 handle and quickly retreated few pips from session tops, albeit has managed to hold its neck in positive territory as traders now look forward to the release of ISM non-manufacturing PMI for some short-term trading opportunities.
Technical levels to watch
Bulls would be eyeing for a clear break through the 1.3590-1.3600 hurdle, above which the pair is likely to aim towards testing 2017 yearly highs resistance near the 1.3655-60 region.
On the flip side, weakness back below mid-1.3500s might now turn the pair vulnerable to break below session low support near the 1.3525 region and head towards testing the 1.3500-1.3490 strong support.